COPENHAGEN, May 12 (Xinhua) -- The inflation rate in Denmark is projected to stay elevated for the remainder of 2022 due to the rising costs of energy and other commodities, the Ministry of Finance said at a press conference here on Thursday.
Finance Minister Nicolai Wammen said that his ministry expects inflation in the country to level off at 5.2 percent for the entire year.
The main driver behind the atypically high price levels is the Russia-Ukraine conflict, the ministry statement said.
"Although the Danish economy's direct exposure to the Russia-Ukraine conflict is relatively limited, the increase in energy and other prices has a clear dampening effect," it said.
Inflation is a pressing concern. On Tuesday, Statistics Denmark said that in April, consumer prices for electricity, gas and food increased by 6.7 percent year-on-year to a 40-year high.
"2022 will be a tough year... The (Russia-Ukraine) conflict has led to price increases for, among other things, energy and food, and this can be felt in many Danish households," Wammen said.
The ministry expects Denmark's gross domestic product (GDP) to grow 3.5 percent this year, slightly below the 2021 figure.
"Overall, I believe the Danish economy is in good shape. However, we are living in a period of great uncertainty. This means that the predictions made must be viewed in that light," Wammen noted. ■